Impact of Free Trade Area on Trade, Revenue and Welfare in Nigeria

Q2 Economics, Econometrics and Finance

Global Journal of Emerging Market Economies Pub Date : 2022-11-30 DOI:10.1177/09749101221128683

N. Chukwu, A. Omeje, K. Ofoezie, M. O. Ugwu, Augustine Jideofor

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引用次数: 1

Abstract

This study offers an analytical evaluation of the effects of Free Trade Area (FTA) agreements on trade, revenue, and welfare in Nigeria. The study applied World-Integrated Trade Solution/Software for Market Analysis and Restrictions on Trade (WITS-SMART), anchored on a partial equilibrium model (PEM) for its simulations. The study simulated 100% tariff elimination on selected products under Harmonized System (HS)-2 classification code sourced from Trade Analysis Information Systems (TRAINS) and Common Format for Transient Data Exchange (COMTRADE). The study’s findings show that the African Continental Free Trade Area (AfCFTA) agreement will benefit Nigeria’s economy from trade creation estimated at US$8,860.419 million, including a favorable welfare gain to the value of US$740.571 million. Nevertheless, Nigeria will sustain losses in trade revenue, valued at US$6,142.061 million. The study recommends proficient revenue management and well-diversified revenue collection sources, such as improvement in Value Added Tax and Ad-Valorem duty, to cushion the effects of the revenue loss resulting from tariff elimination in the FTA.

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自由贸易区对尼日利亚贸易、收入和福利的影响

本研究对自由贸易区协议对尼日利亚贸易、收入和福利的影响进行了分析评估。该研究应用了世界综合贸易解决方案/市场分析和贸易限制软件（WITS-SMART），以部分均衡模型（PEM）为基础进行模拟。该研究模拟了根据贸易分析信息系统（TRAINS）和瞬态数据交换通用格式（COMTRADE）的协调制度（HS）-2分类代码对选定产品100%取消关税的情况。该研究结果显示，非洲大陆自由贸易区（AfCFTA）协议将使尼日利亚经济受益于估计为8860.419万美元的贸易创造，其中包括价值74057.1万美元的有利福利收益。尽管如此，尼日利亚的贸易收入仍将遭受损失，价值614206.1万美元。该研究建议熟练的收入管理和多样化的收入来源，如提高增值税和增值税，以缓解自由贸易协定中取消关税造成的收入损失的影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Journal of Emerging Market Economies Economics, Econometrics and Finance-Economics, Econometrics and Finance (miscellaneous)

CiteScore

2.70

自引率

0.00%

发文量

期刊介绍： Global Journal of Emerging Market Economies is a peer-reviewed journal. The aim of the journal is to provide an international platform for knowledge sharing, discussion and networking on the various aspects related to emerging market economies through publications of original research. It aims to make available basic reference material for policy-makers, business executives and researchers interested in issues of fundamental importance to the economic prospects and performance of emerging market economies. The topics for discussion are related to the following general categories: D. Microeconomics E. Macroeconomics and Monetary Economics F. International Economics G. Financial Economics H. Public Economics I. Health, Education, and Welfare J. Labor and Demographic Economics L. Industrial Organization O. Economic Development, Innovation, Technological Change, and Growth Q. Agricultural and Natural Resource Economics • Environmental and Ecological Economics R. Urban, Rural, Regional, Real Estate, and Transportation Economics Additionally, the journal would be most interested to publish topics related to Global Financial Crisis and the Impact on Emerging Market Economies Economic Development and Inclusive Growth Climate Change and Energy Infrastructure Development and Public Private Partnerships Capital Flows to and from Emerging Market Economies Regional Cooperation Trade and Investment and Development of National and Regional Financial Markets The Belt and Road Initiative.